NY Wheel applies for an extension to get the project back on track

STATEN ISLAND, N.Y. -- After being given 120 days to get the New York Wheel project back on track, the developers of the 630-foot tourist attraction are asking for an extension.

The NY Wheel was given a Sept. 5 deadline in Delaware Bankruptcy Court to take steps -- such as hiring a new contractor -- toward recommencing construction of the project.

The agreement hashed out in the spring between the Holland-based Mammoet-Starneth -- the Wheel's former contractor -- and the NY Wheel in Delaware Bankruptcy Court allowed both parties to enter a 120-day standstill period.

The agreement is a culmination of more than a year of court battles between the two parties.

In court papers filed on Tuesday, the NY Wheel said it wants to extend the Sept. 5 deadline pursuant to an agreement currently being prepared.

The NY Wheel issued the following statement to the Advance:

"The New York Wheel is in the process of negotiating an amendment to the settlement agreement, including extending the standstill period. In connection with the amendment negotiations, all parties have agreed to extend the Sept. 5, 2018 deadline in the settlement agreement until, at least, Sept. 11, 2018, so that the amendment can be negotiated."

The amendment would extend the standstill period and make some other changes -- which are not specified -- to some previously agreed to terms, according to court papers.

If the NY wheel doesn't file the motion on Friday, then the standstill will expire on Sept. 11, according to court documents.

The NY Wheel wouldn't provide further details of the amendment at this time.

COURT BATTLE

Problems with the NY Wheel began when Mammoet-Starneth walked off the job on May 26, 2017, and filed for bankruptcy in December.

The payment of the storage costs was ordered by the court after Mammoet-Starneth wanted to auction off the parts of the Wheel as part of its liquidation of assets, according to court records.

Mammoet-Starneth LLC as been given an extension until Nov. 27 to accept the terms of its bankruptcy agreement, which includes severing ties with the Wheel, according public records.

"As part of the settlement, the debtor's [Mammoet-Starneth] exclusive period to file a plan was to be extended through this November 27th date. However, if [the] New York Wheel were to determine to terminate the settlement agreement, it retains the right to seek early termination of the exclusive period," said the NY Wheel in a statement.

Since this is a privately-funded project, the NY Wheel has no obligation to disclose how much financing is needed for the tourist attraction to come to fruition.

In 2015, former NY Wheel CEO Rich Marin told the Advance the project was fueled by $195 million in senior debt from the Highbridge Strategies hedge fund unit of JPMorgan Chase, $111 million in equity, and $174 million from CanAm Enterprises as part of a federal green card program known as EB-5.

However, he recently told an Advance reporter that it's the city Economic Development Corporation (EDC) that could help move the project along.

Said EDC: "We are having ongoing conversations with the Wheel developer in the hopes of moving the project forward."

WHAT WOULD HAPPEN TO THE PROPERTY?

The property on which the Wheel is to be constructed is under the jurisdiction of the EDC.

When asked what would happen to the property if the Wheel is not built, the agency released the following statement:

"We remain hopeful that the developer will find a way to deliver this project for the people of Staten Island and New York City. Should the developer not be able to deliver the project, we would engage local stakeholders and community members to gather their thoughts and vision for the future of the site."